Clean Energy Wire

Curbing CO2 through the EU’s Emissions Trading System (EU ETS) has not hurt the profitability of companies or jobs in Europe between 2005 and 2014, a report by the Organisation for Economic Cooperation and Development (OECD) says. The authors compared financial data from 2,000 firms operating ETS-regulated facilities with firms from the same countries and sectors that don’t fall under the ETS. They also found that the ETS didn’t hurt the competitiveness of European industry compared to other regions. Between 2005 and 2012, the European cap-and-trade system for CO2 allowances reduced emissions from ETS-regulated industry by 10-14 percent. In Germany, which accounts for almost one quarter of all EU ETS emissions, the report did not find any statistically significant impact on employment.